Dashboards & reports to help you stay on top of your strategy. Tracking growth metrics helps you determine your progress towards reaching your long term goals. KPI Example: Increase conversion rate to 5% by 30/06/2019. Conversions rates are even more important to measure if you have an eCommerce store in addition to brick and mortar. This can also be paired with your conversion rate metric to determine a period in which you might be under- or overstaffed. Book a chat with one of our strategy experts now: by Pat Ordenes, on Feb 19, 2019 3:43:54 PM. Sydney, AU: +61 2 8294 2000Portland US: +1 503 765 9534. ), Franchise Brand Consistency: 7 Ways to Get Your Franchisees On Brand, Cycle Count vs. KPI example: Increase average transaction value by $50 by 31/08/2019. This form of visibility is essential to keeping track of your business’ true success. These are the key performance indicators under the Sales category. How it’s useful: This is a helpful metric to get a better overall picture of your sales: measure your conversion rates against your labor costs. This KPI is an excellent piece of information to share with retail managers and decision-makers. KPIs specify what is measured and assessment techniques detail how and when it will be measured. Instead, this is about planning out your strategies so that you can push your business to grow. Conversion Rate. Type : KPI … It also is an indicator of staff performance. There are hundreds of measurable retail KPIs but a handful of them are of particular importance across the vast realm of retail. Detailed POS reports, like the one below from KORONA, do the math for you so you can spend more time on other business operations. How it’s useful: Finding out your relative market share compares you to the leading competitor in your industry so you can see how far you are from them. As this metric specifically measures different products and categories, it is easy to understand which products are profitable and which aren’t. That’s why it is important to track customer retention. If you see a sudden drop in your conversion rate and a high shopper to staff ratio, you’ll know that heavier staffing will probably increase sales and is worth the bump in labor costs. Some of these trends aren’t visible while tracking smaller metrics. Please use a different email address or contact us at, get creative with product placement, store layout, upselling, make sure you don’t have a low conversion rate, How to Find Business Insurance: 11 Types of Small Business Insurance, Dynamic Pricing Strategy: A Guide to Retail Pricing for 2021 and Beyond, Retail Store Analytics: How Sales Metrics Can Help a Small Business Scale, How Do SKU Numbers Work: Stock Order Units Explained, Advantages of Perpetual Inventory: The Benefits of a Modern Inventory System, Brand Awareness Strategies for Retailers and Small Businesses, Top 10 Blog Posts of 2020 from KORONA POS: Must-Reads for Retailers, How to Run Your Business Offline (with a Brief History of Credit Cards! As Content Strategist at KORONA, Michael comes from a background in blog writing and content management as well as extensive use of various point of sale systems. So if you sold $100,000 in product and your inventory cost was $50,000, your GMROI would be 2 (you earn $2 for every $1 invested in inventory). Just combine this metric with a few others to make it more revelatory of the health of your business. How it’s useful: Such a metric is key for seasonal ordering and marketing. This metric correlates with retention since the level of service and/or quality of goods sold will have a direct effect on retention and foot traffic. These are: Total sales; Store traffic; Net profit margins; … It’s calculated by measuring the costs of the goods sold and dividing that by the cost of the average amount of inventory on hand. It provides the percentage of inventory of a specific product that was sold over a chosen time period. 10 Important Retail KPIs for Small Businesses (Updated for 2021!) Lagging KPI - is a type of indicator that reflect the success or failure after an event has been consumed. This article does a great job of walking you through foot traffic and the various ways to measure it. It’s hard enough to get feet in the door, so you want to make sure you don’t have a low conversion rate. It also helps identify troubling trends and issues with overall performance. They are two important measures of how well your retail … Top 10 Metrics (KPIs) for Retail Stores #1. What products were integral in the growth or decline of your business? Year … It encourages business owners to get creative with product placement, store layout, upselling, POS marketing, etc. However, today we bring to you key KPI types and KPI … For example, your profits and conversion rates might be sound, but your growth KPIs might still show a downward trend. KPI Example: Increase daily foot traffic to 150 by 31/03/2019. It’s essential to measure this before and after a retail redesign. That depends. This metric tells you how much people spend on your products on average. In other words, it takes the cost of goods sold (COGS) into account. This will give you a clear idea of how much it costs to maintain your retail space and the amount of revenue that space generates. Some KPIs give you a perspective on your store layout. This measure is taken by dividing the total number of transactions by the total number of customers in your shop. How it’s useful: It helps determine reasonable markup prices. While running a retail business, it’s easy to lose sight of goals and performance. Foot traffic also helps you determine if particular locations, ad campaigns, or products are successful. KPI Example: Increase conversion rate to 5% by 30/06/2019. Website traffic and foot traffic are retail KPIs critical for assessing whether your promotional activities have made a positive business impact, which starts with traffic. First, this determines how efficient your precious space is being used. Speaking of keeping a history of sales on hand, year-over-year analytics is one of the more basic, but essential KPIs. How it’s useful: Measuring the rates of returned items is a straightforward way of evaluating customer satisfaction. In this guide, we’ll run you through everything you need to know about sales KPIs and metrics + highlight the 18 essential sales KPIs … Before you can improve your retail store’s sales or customer base, or meet another growth target, you need an accurate picture of the current situation. KPIs: The Metrics that Matter Most. How it’s useful: This metric is most useful for identifying ideal par levels on your inventory. Here are some KPIs that provide insight into how much money your business is earning or spending: Gross profit tells a business owner how much money they’ve earned after deducting product creation and sales costs. If you want to understand the overall customer satisfaction with the products you offer and the experience you’re providing, a good KPI to measure is percent of returning customers. Outcome KPI … Simply put, this measures the rate at which a certain product is sold. KPI example: Increase click-to-call inquiries to 100 per week by 31/12/2019. but a handful of them are of particular importance across the vast realm of retail. This can be measured with NPS score and/or regular surveys delivered to the customers after the transaction (we've covered NPS in this article). Retail KPIs Tell the Story. You can compare the success of your online platform with your bricks-and-mortar platform and direct resources accordingly. This is not at all about comparing and putting yourself down. This metric gets at the very heart of what your goals should be as a retailer. This will help you optimize your campaign effectively. Like revenue per customer, or customer profitability, the idea is to figure out which … #2. 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